Cathie Wood Sells Another $6.4M In Tesla — Piles Up Shares In Draftkings Instead

Benzinga2022-05-03

Cathie Wood-led Ark Investment Management booked more profit in Tesla Inc (NASDAQ: TSLA) on Monday as shares in the electric vehicle firm rose, and increased exposure to zero-commission trading app maker Robinhood Markets Inc (NASDAQ: HOOD).

St. Petersburg, Florida-based Ark Invest sold 7,146 Tesla shares, estimated to be worth $6.45 million.

Tesla shares closed 3.7% higher at $902.94 a share on Monday after days of sluggishness. The stock is down 24.7% year-to-date.

The popular stock-picking firm owns shares in Tesla through three of its six actively traded exchange funds: Ark Innovation ETF (NYSE: ARKK), Ark Autonomous Technology & Robotics ETF (BATS: ARKQ), and Ark Next Generation Internet ETF (NYSE: ARKW).

The three ETFs held 1.3 million shares worth $1.13 billion in Tesla before Monday’s trade.

Tesla shares were targeted by speculators in April after CEO Elon Musk declined to disclose the source of funding for his Twitter purchase and later, when he sold $8.5 billion of its stock. Tesla is not involved in the deal.

Ark, which has set a $4,600 price target on Tesla by 2026, has been booking profits every time the stock rises to around $1,000 or more.

Wood bought Tesla shares in January when shares plunged 11% on a single trading day.

Here are some other key Ark Invest trades from Monday:

  • Bought 270,795 shares, estimated to be worth $2.8 million, in crypto-linked stock Robinhood. Shares closed 6.8% higher at $10.48 but are down about 70% since the company went public in July.

Robinhood, which enables the trading of cryptocurrencies such as Bitcoin(CRYPTO: BTC) and Dogecoin(CRYPTO: DOGE) came under fresh attack from Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) Vice Chairman Charlie Munger over the weekend.

  • Bought 189,451 shares, estimated to be worth $2.83 million, in Draftkings Inc (NASDAQ: DKNG). The sports betting company's stock closed 9.58% higher at $14.99 on Monday and is down 46% YTD.
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